This bill proposes updates to current statutes regarding the use of escrow accounts by escrow agents. Under the new provisions, an escrow agent may use funds in an escrow account for a one-time payment or multiple payments as specified in a loan agreement, with certain exceptions. These exceptions include scenarios where the loan agreement or a deed in lieu of foreclosure explicitly states an alternative purpose for the funds, or where parties enter into an agreement to negotiate a settlement that includes provisions for the use of the funds, or to address accounts in arrears.

Additionally, the bill introduces a new section, 6-834.01, to clarify that the changes made are intended to be non-substantive and merely clarifying in nature. The existing requirements for escrow agents to maintain and deposit all escrow funds in a designated manner remain unchanged, ensuring that the integrity of the escrow process is preserved while allowing for more flexibility in the use of funds under specific circumstances.

Statutes affected:
Introduced Version: 6-834.01
House Engrossed Version: 6-834.01
Senate Engrossed Version: 6-834.01
Chaptered Version: 6-834.01